Healthcare Trends to Watch in 2024

Some key trends to watch from some of my colleagues at FTI in their article The Evolution of Healthcare: Trends to Watch in 2024.

• Commercialization of Healthcare. Over the past decade, private equity’s presence in the healthcare sector has significantly accelerated, with annual deal values soaring from $41.5 billion in 2010 to $119.9 billion in 2019. This rapid increase has drawn increased scrutiny from lawmakers and researchers, particularly concerning inflated pricing, limited competition, and decreased quality of care linked to private equity-backed organizations.
• Mergers and Acquisitions (M&A). In 2023, the M&A landscape was significantly impacted by high interest rates and reduced credit flows, leading to a noticeable decrease in deal activity, including in the healthcare sector. As financial sponsors adapt to these changing economic conditions, 2024 is poised to see a strategic shift affecting where dollars are invested within the healthcare sector. There is decreased focus in physician practice management roll-up deals, and more interest in healthcare IT and pharmaceutical services.
• Digital Health. Digital patient engagement is already a $200+ billion market and is expected to grow by over 18% annually through 2032.8 Though the healthcare experience is improving for patients, the pace of that improvement continues to lag behind other consumer-driven industries. Patients are still met with phone calls, paperwork, delayed responses, and frustrating or ineffective technology interfaces. Key areas of focus include data security, cost reduction/workflow efficiency and improved patient experience/quality of care,

The article has much more detail include thoughts on trends for the post-COVID market for diagnostics.

Originally posted at Healthcare Economist.?

The views expressed herein are those of the author and not necessarily the views of?FTI Consulting, Inc., its management, its subsidiaries, its affiliates, or its other professionals.